Fabryki Mebli FORTE (FTE) Q1 2025 earnings summary

Executive summary

• Sales revenue increased by 7.6% year-over-year to PLN 269,938 thousand for Q2 2025, driven by higher chipboard sales and improved operational efficiency.

• Net profit reached PLN 11,232 thousand, reversing a net loss of PLN 11,396 thousand in the same quarter last year.

• Gross margin improved to 37.5%, up 4.7 percentage points year-over-year, reflecting cost optimization and favorable hedging results.

• EBITDA rose 62.8% year-over-year to PLN 37,667 thousand, and EBIT more than doubled to PLN 23,715 thousand.

Financial highlights

• Operating profit (EBIT) increased 159.6% year-over-year to PLN 23,715 thousand.

• Net cash flow from operating activities was PLN 43,034 thousand, up from PLN 28,253 thousand a year earlier.

• Total assets decreased by 4.7% sequentially to PLN 1,411,584 thousand, mainly due to lower current assets.

• Equity accounted for 65% of total assets at quarter-end.

Outlook and guidance

• Management expects continued challenges from weak demand in key European markets and currency headwinds.

• Focus remains on profitability, new sales channels, and product innovation, including EasyKlix technology.

• Growth opportunities seen in chipboard sales and digitalization of sales platforms.